UAW says 64% of workers vote to ratify Detroit Three contracts
THE United Auto Workers (UAW) union said on Monday (Nov 20) that 64 per cent of workers at the Detroit Three automakers voted to ratify new contracts.
The votes lock in the UAW’s tentative agreements with the automakers through April 2028, which include a 25 per cent increase in base wages and will cumulatively raise the top wage by 33 per cent, compounded with estimated cost-of-living adjustments to over US$42 an hour.
The ratification is a relief for the automakers after the strike halted production at various plants across the US. A rejection could have led to new strikes and pressure from UAW leaders for more costly contracts.
Despite the opposition from workers at some major facilities, UAW members voted to ratify the contract by a near two-third margin.
Votes in favour of the agreement from workers at some parts and components operations who stand to get substantial raises as they move to higher pay classifications outweighed votes against the contract from some veteran workers.
“After years of cutbacks, months of our Stand Up campaign, and weeks on the picket line, we have turned the tide for the American autoworker,” UAW President Shawn Fain said in a statement on Monday.
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Automakers, looking to trim costs as they make the shift to electric vehicles, face higher hourly labour costs.
Ford has estimated the new contract will add US$850 to US$900 in labour costs per vehicle.
“Thankfully, we are on track to reach full production schedules in the coming days at our assembly plants in Michigan, Kentucky and Illinois that were affected during the strike,” Ford CEO Jim Farley said in a statement on Monday.
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About 55 per cent of votes cast by GM members were in favour of the new deal, while about 69 per cent of Ford members and 68 per cent of Stellantis workers who voted supported the agreement, according to a UAW vote tracker.
Chrysler-parent Stellantis and GM did not immediately respond to Reuters requests for comment. REUTERS
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